Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows†

By Torfinn Harding, B. Javorcik. 2011

266 citations recorded by the source corpus.

This study uses newly collected data on 124 countries to examine the effects of investment promotion on inflows of US foreign direct investment (FDI). We test whether sectors explicitly targeted by investment promotion agencies in their efforts to attract FDI receive more investment in the post-targeting period, relative to the pre-targeting period and non-targeted sectors. The results of our analysis are consistent with investment promotion leading to higher FDI flows to countries in which red tape and information asymmetries are likely to be severe. The data suggest that investment promotion works in developing countries but not in industrialised economies.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/22f7c9a54fd7e241886ea043ff4c0b5e8b8e7c5f

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Strategy and Management

Citations in the corpus

Does FDI Bring Good Jobs to Host Countries? (2012, background): “As shown by Harding and Javorcik (2013), a higher quality of investment promotion agencies translates into higher FDI inflows.”
The effect of FDI on environmental emissions: Evidence from a meta-analysis (2020, background): “(2015); Havranek et al. (2016); and Demena and van Bergeijk (2017)).”
What is Real and What is Not in the Global FDI Network? (2019, unknown): “reports whereas FDI statistics use market values whenever possible.(24) Finally, we use the Orbis-based measures of FDI to produce the conversion factors δhi.”
Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry (2016, background): “Despite this lack of academic consensus on the effects of FDI in host economies, policy makers tend to assume generally positive FDI effects on host economies and host country firms, especially in terms of FDI’s potential for technology and knowledge transfer (Harding and Javorcik, 2011; Hallin and ”